Despite being a global software leader, India is perceived as a laggard in artificial intelligence as it currently has neither a domestic chip industry nor a comprehensive core AI model. However, Macquarie says this narrative will change. The narrative of India as an AI bystander may be changing to one of it being an “AI powerhouse, leveraging its unique data sets and massive infrastructure buildout to usher in a new era of growth,” the global brokerage firm said in a report on Wednesday. The Indian market has underperformed its Asian peers over the past year as global capital flows have favored AI companies in China and chipmakers in Korea and Taiwan. Foreign institutional investment in Indian markets currently stands at around $700 billion, while Taiwanese chipmaker TSMC’s foreign holding alone is worth $1.2 trillion, said Nitin Jain, CEO and director of Kotak Mahindra Asset Management Singapore, highlighting how AI has shaped capital flows in the region. Still,…